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Greencastle is a city in the state of Indiana, in the United States. Before Greencastle became a city in 1861, it was a town. Greencastle, Indiana was founded in year 1821 by a man named Ephraim Dukes after he purchased and later sold some land to the local government. This type of purchase is called a land grant. Ephraim Duke named the settlement for his hometown of Greencastle, Pennsylvaniaa.